Real Estate Agents and Professionals, are you looking for more tax savings and accounting help for your business?
At IRS Tax X Relief & Accounting, LLC, we specialize in working with self-employed real estate agents, realtors, real estate brokers, mortgage brokers and mortgage loan originators. We understand how the real estate business works and all the components that impact your income and taxes. Our firm offers a full array of accounting, tax and business advisory services customized for real estate professionals.
Business Tax Services
High levels of technical and real estate specific expertise allow our tax professionals to ensure our client's tax returns are prepared efficiently and timely. Our CEO Cheryl Phen has over 25 years of real estate experience as the Real Estate Broker for Landstar Realty and Principal Mortgage Broker for Landstar Mortgage.
We review businesses’ tax accounting methodologies specifically for the real estate industry and apply proper accounting and accounting method strategies to maximize income tax benefits. Leave the accounting work for the experts.
We possess the expertise and experience to represent taxpayers before the IRS and tax authorities in all 50 states nationwide. Our tax professionals understand the dispute resolution and appeals process. We will work diligently to obtain the most favorable results for you as your trusted tax advisor and advocate.
Did you know Real Estate Agents & Professionals are one of the most audited businesses by the IRS?
Now that your real estate business is growing exponentially, you want to protect your income and assets from the IRS. According to Cheryl Phen, a well respected former Senior IRS Agent for 10+ years of the IRS Small Business Self Employed division, the following are some commonly audited tax issues. She had first hand experience auditing numerous real estate agents, realtors, real estate brokers, mortgage brokers, mortgage loan originators, construction contractors, and other real estate businesses.
IRS Audit Triggers for Real Estate Agents & Professionals
1. Your numbers don’t match. The quickest way to get a letter from the IRS is when there is a matching error on your tax return. The automated matching system is one of the first things they look at. Make sure your 1099’s and W-2’s match the amounts being reported to the IRS.
2. You made a lot of money this past year. Congratulations, you're earning more! Very likely your taxes will increase, too. You want to reduce your taxes but be careful not to over estimate your expenses. The IRS loves to audit real estate professionals with high income. Be very meticulous with your tax record keeping to avoid an audit.
3. You are self-employed. The IRS has a special division Small Business Self Employed (SBSE) that targets small businesses who are self-employed. Small businesses have higher risk of being audited than someone earning a paycheck from a large company. Therefore, you should pay your business taxes on time (quarterly or annually).
4. You deduct your home office and/or vehicle. BIG RED FLAGS!! You want to deduct as much expenses as possible, right? The strict record keeping and tax codes for these expenses are quite lengthy and complicated. Most real estate agents and professionals do not have a clear understanding about what is and is not deductible for the home office and the vehicle. That is why it is so important to seek professional help to avoid an audit.
5. You have a lot of “meal/entertainment” deductions. The allowable tax deductions for meals and/or entertainment sometimes change from year to year. Are you deducting the entire amount when you should only be deducting the portion that was for the client(s)? Are you spending amounts that would be considered “excessive” or “lavish”? Be careful not to spend amounts that are too large in proportion to your gross income. Don't get caught in these situations that may trigger an audit.
6. You were particularly generous this year! Are all your charitable donations eligible as deductions? The IRS has specific requirements for cash and non-cash donations knowing that many people tend to inflate their charitable donations. Check the guidelines before reporting them on the tax return.
7. Big Deductions? Any deductions that are exceptionally large and outside of the norm for your real estate business will likely set off an audit. If you have a very good reason for the expenses, be sure to keep tax records to support them.
8. Suspicious Round Numbers? Round numbers on your returns will raise an auditor’s eyebrow. Lets be honest, how often do you spend exactly $10 on a purchase? Highly unlikely! It is best to use actual expenses rather than estimates.
Accounting and Tax Services
If you are being audited or having tax problems, IRS Tax X Relief & Accounting can help you through the process. We understand how the IRS works and what it takes to successfully mediate a solution on your behalf whether it's representing you for an audit, filing a past due return, minimizing back tax debt and any penalties or fines, or submitting an offer in compromise.
Our friendly, knowledgeable tax professionals are experts at what they do and are here to help you resolve the tax problems.
Let us handle all your business accounting and tax needs, so you can focus on growing your real estate business. We will ensure that you are in compliance with the ever changing tax laws and current market conditions affecting the real estate industry.
Get Tax Help with an Expert Today!
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